The CIO of JPMorgan Asset Management said it’d be “naive to say that this is just limited to First Republic.”
An executive at JPMorgan Asset Management is unsure how United States regional banks are “going to operate” when the Federal Deposit Insurance Corporation (FDIC) and Federal Home Loan Bank (FHLB) emergency lending programs expire – warning that the possible collapse of First Republic Bank may cause a domino effect.
In an April 27 Bloomberg television interview, Bob Michele, CIO of JPMorgan Asset Management said that the impact of First Republic's liquidity issues caused by significant deposit outflows isn’t “just limited” to the bank itself, but could potentially affect the entire banking industry.
Michele emphasized that this is not an isolated incident, when asked if he sees this as a “First Republic problem or a banking problem.” He stated:
“Well, I think we have both, I think it’s somewhat naïve to say that this is just limited to First Republic.”
He added that the liquidity issues faced by First Republic “should never have happened,” as banking is the “most heavily regulated capitalized industry on the planet.”
Michele believes there needs to be “continuous progress to some sort of resolution” for the impact of First Republic’s downfall to be contained, or “ringfenced,” and prevented from spreading throughout the broader financial system.
Michele blamed the “high price of everything” as a major factor leading to the recent banking crisis events, as the “bottom quartile of earners” in the United States have been “most punished,” forced to deplete their deposit balances “just to live.”
He stated that "most people’s" deposit balances are now even lower than before the beginning of the Covid-19 pandemic.
Michele believes that a resolution is urgently needed as regional banks are “heavily dependent” on both the FDIC and FHLB.
“I think the regional banks are heavily dependent on the FDIC, they are heavily dependent on the federal home loan bank to get additional cash, we don’t know how they are going to operate when those two programs expire.”
During the last quarter of 2022, both Signature Bank and Silvergate Bank reportedly received substantial loans from the FHLB – a consortium of 11 regional banks across the United States that provides funds to other banks and lenders – totalling nearly $10 billion and at least $3.6 billion, respectively.
However, despite the financial assistance, both banks eventually collapsed due to significant deposit outflows.
Related: Bitcoin price jumps in the wake of First Republic Bank price crash
Ryan Selkis, CEO of blockchain research firm Messari, suggested in a tweet to his 322,000 followers on April 29 that unless the government recognizes that the Federal Reserve's (Fed) policies "are to blame and not crypto," more banks may face collapse in the future.
Did crypto kill First Republic too?
— Ryan Selkis (@twobitidiot) April 28, 2023
Or is DC going to recognize that their and the Fed’s policies are to blame and not crypto.
Maybe by bank #10, things will change.
This comes after “people with knowledge” told Bloomberg on March 21 that Treasury Department staff members are reportedly studying ways to expand the current deposit insurance beyond the maximum cap of $250,000 to cover all deposits in the United States.
According to the FDIC, domestic U.S bank deposits totalled $17.7 trillion as of December 31.
Magazine: Unstablecoins: Depegging, bank runs and other risks loom
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12.10.25 01:12
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12.10.25 21:36
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robertalfred175
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14.10.25 08:46
robertalfred175
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14.10.25 08:46
robertalfred175
CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1
15.10.25 18:07
crypto
Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.
15.10.25 21:52
harristhomas7376
"In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1
15.10.25 21:52
harristhomas7376
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